• Tuesday, July 23, 2024
businessday logo

BusinessDay

NNPC eyes three mini-LNG projects in August

NNPC denies owning blending plant in Malta

The Nigerian National Petroleum Company Limited (NNPC) has announced plans to break ground on three mini-Liquefied Natural Gas (LNG) projects in August 2024.

The announcement was made by Mele Kyari, NNPC’s group chief executive officer, during the inaugural Africa Gas Innovation Summit in Abuja, organized by the Society of Petroleum Engineers under the theme, “Igniting the Future: Driving Sustainability in Africa’s Energy Landscape through Gas Technology and Innovation.”

Kyari, represented by Olalekan Ogunkeye, the executive vice president of Gas, Power, and New Energy, revealed that NNPC would finalise investment decisions this year for six additional Compressed Natural Gas (CNG) mother stations.

He added that the company is currently upgrading numerous CNG refuelling stations across Nigeria.

Kyari noted, “In order to accelerate gas commercialisation, bearing in mind that this is the era of gas, NNPC has signed Memorandum of Understandings and project development agreements for floating LNG projects which will be the first in Nigeria, while currently executing a 30 Million standard cubic feet per day(mmscd/d) small scale mini-LNG project.”

“We are currently participating in three mini-LNG projects scheduled for groundbreaking this August. NNPC is also currently leading the Federal Government’s autogas initiative,” he added.

Kyari mentioned that NNPC recently inaugurated a 5.2 mmscf/d CNG plant in Ilasamaja and plans to roll out six more CNG mother stations this year.

Additionally, scores of CNG refuelling stations are being renovated nationwide to provide cleaner and cheaper fuel.

Aside from the recent inauguration of the 5.2mmscuf/d Ilasamaja mother station CNG plant, the GCEO of NNPC recently announced plans to take a Final Investment Decision within this year and roll out additional six CNG mother station plants with similar capacity, and scores of CNG refilling stations are being renovated and upgraded to provide access to cleaner and cheaper fuel across the country.

He highlighted other initiatives, including developing gas-based industries in strategic locations nationwide, which will feature fertilizer and chemical plants. These efforts are part of the federal government’s Decade of Gas program.

“Other initiatives, according to him, include the development of several gas-based industries in industrial hubs at strategic locations nationwide, boasting fertilizer and chemical plants, among others,” he said.

Commenting on the energy landscape, Kyari said sub-Saharan Africa is still energy deficient despite contributing the lowest volume of emissions globally.

Kyari emphasised Nigeria’s vast natural gas reserves of over 209 trillion cubic feet (TCF), which can address these challenges by providing electricity, clean cooking fuel, autogas, and industrial feedstock.

He added that NNPC is focused on leveraging Nigeria’s gas assets to generate value and opportunities for all Nigerians.

He mentioned that key gas infrastructure projects, such as the second phase of the AHL gas processing plant and the 300mmscf/d ANOH gas processing plant, have already been inaugurated.

“NNPC is absolutely focused on leveraging the nation’s gas assets to significantly generate value and opportunities for all Nigerians. This indeed is what Nigerians deserve,” Kyari mentioned.

On his part, Salahuddeen Tahir, chairman of the Society of Petroleum Engineers Nigeria Council, identified key challenges in Africa’s energy sector, including financing, technological gaps, high production costs, infrastructure issues, and security concerns. He stressed the urgency of innovation to benefit the industry and economies.

“There is no gainsaying that Africa needs to urgently innovate for the benefit of our industry, our respective economies and our citizenry,” Tahir remarked.